Attorneys for Credit Suisse are due in federal court Thursday over accusations that the international banking giant arranged hundreds of millions of dollars in predatory loans with the goal of taking over luxury resorts in Montana, Idaho, Nevada and the Bahamas.
Plaintiffs backed by the founder of Montana’s ultra-exclusive Yellowstone Club, Tim Blixseth, are seeking billions of dollars in damages.
They claim Credit Suisse set up an offshore branch to skirt U.S. lending rules as part of a “loan to own” scheme, in which resorts were appraised at inflated prices then given loans they could not repay to force them into foreclosure.
